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Former Republican Majority Leader Tom DeLay Convicted Of Money Laundering Charges

The Associated Press is reporting that former Majority Leader Rep. Tom DeLay (R-TX) has been convicted of money laundering charges. “The verdict came down five years after DeLay was forced to step down as the second most powerful Republican in the U.S,” noted the AP. According to the New York Times, DeLay faces “up to life in prison”:

Jurors deliberated for 19 hours before they came back with guilty verdicts against Mr. DeLay on charges of money laundering and conspiracy to commit money laundering. The verdict was the latest chapter in a long legal battle that forced Mr. DeLay to step down. The trial also opened a window on the world of campaign financing in Washington, as jurors heard testimony about large contributions flowing to Mr. DeLay from corporations seeking to influence him and junkets to posh resorts where the congressman would rub shoulders with lobbyists in return for donations.

Mr. DeLay faces up to life in prison on the money laundering charge. [...] Judge Pat Priest has wide discretion in sentencing the former majority leader, who was known as “The Hammer” for his no-holds-barred style during 20 years in the House of Representatives. Mr. Delay could be sentenced from 2 years to 20 years in prison for the conspiracy count, and from 5 years to 99 years, or life in prison, for the money-laundering count..

DeLay had concocted a scheme to funnel corporate money from his lobbyist allies into Texas state politics, illegally circumventing state law barring corporate money. DeLay’s front, Texans for a Republican Majority, then used that money to elect a new majority of Republicans to the state legislature and gerrymander the state so DeLay could elect more House Republicans. The new district lines, drawn in 2003, targeted House 11 Democrats for defeat. Investigators narrowed down $190,000 in corporate money funneled by DeLay into the redistricting scheme.

Yglesias

Endgame

Yeah! Big Apple!

— More on profits.

— Walmart seems to be winning over my neighborhood blog commenters.

— Another win for JournoList.

— How come no Tea Partiers want to repeal the 2003 Medicare prescription drug benefit.

— Negotiating with North Korea should start with low expectations.

— Key thing to remember about Korea is that ROK victory in a war over DPRK would leave them with the unsolvable problem of running the former DPRK.

Heading up to NYC for the Thanksgiving holiday, so it’s the Yeah Yeah Yeahs’ “Yeah! New York.”

Yglesias

Understanding Too Well

Richard Cohen did a good yesterday about Sarah Palin, Michelle Obama, and race:

It is Sarah Palin who brings back these memories. In her new book, she reportedly takes Michelle Obama to task for her supposedly infamous remark from the 2008 campaign: “For the first time in my adult life, I am proud of my country because it feels like hope is finally making a comeback.” [...]

It’s appalling that Palin and too many others fail to understand that fact – indeed so many facts of American history. They don’t offer the slightest hint that they can appreciate the history of the Obama family and that in Michelle’s case, her ancestors were slaves – Jim Robinson of South Carolina, her paternal great-great grandfather, being one. Even after they were freed they were consigned to peonage, second-class citizens, forbidden to vote in much of the South, dissuaded from doing so in some of the North, relegated to separate schools, restaurants, churches, hotels, waiting rooms of train stations, the back of the bus, the other side of the tracks, the mortuary, the cemetery and, if whites could manage it, heaven itself.

It was the government that oppressed blacks, enforcing the laws that imprisoned them and hanged them for crimes grave and trivial, whipped them if they bolted for freedom and, in the Civil War, massacred them if they were captured fighting for the North. And yet if African Americans hesitate in embracing the mythical wonderfulness of America, they are accused of racism – of having the gall to know more about their own experience and history than Palin and others think they should.

The one twist I would give here is that I suspect Palin and her ilk actually understand this all too well. And that’s precisely the issue with all the various insinuations that the Obamas are somehow insufficiently American. This is a polite way of saying that they’re too black. White people understand perfectly well that black people’s understanding of America isn’t the same as white people’s understanding of it, but they prefer the white understanding. In general, Americans and foreigners alike prefer nationalist mythology to real history. They know the mythology is inaccurate, but they still like. And they worry about the idea of people whose ethnic background foregrounds the ugly truth.

Politics

After He Promised Transparency, Ohio Newspapers Blast Kasich’s Refusal To Disclose Records As ‘Outrageous’

Ohio Governor-elect John Kasich (R) spent much of his campaign selling the “accountability” and “transparency” buzzwords to Ohio constituents this year. Touting a “new way” of doing politics, Kasich promised to “recharge Ohio” with a smaller, more open government that would require accountability within important sectors – like education – that weren’t up to par. This generic rhetoric, however, sounded enough like a revolution to win him the endorsements of several prominent state newspapers, including the Cleveland Plain Dealer, the Columbus Dispatch, and the conservative Cincinnati Enquirer.

But just weeks after defeating Ohio’s incumbent Gov. Ted Strickland (D), Kasich’s incoming administration is turning on those previously-espoused principles and refusing to release the resumes of the job applicants for politically-appointed state government jobs. While Strickland “regularly” released the records of job applicants for the public, Kasich claims that because the resumes are solicited via www.fixohionow.com — a private site owned by the Kasich-Taylor New Day Committee, Inc. — those who desire to work for him have an expectation of privacy. Pointing out that Kasich won its endorsement based on his stated “bias towards openness,” the once-supportive Cincinnati Enquirer lambasted his rationale as “an outrageous nose-thumbing at well-established principles of openness”:

Mere weeks after defeating incumbent Gov. Ted Strickland, the Kasich team has said it won’t make the names or resumes of applicants for state jobs public – an outrageous nose-thumbing at well-established principles of openness and disclosure of public information.

Within a day of opening his FixOhioNow.com website, Kasich had received more than 1,500 resumes for public jobs via e-mail to the site.

But if he gets his way, the public will never know who applied, what criteria were used in hiring – or who might have been more qualified choices.[...]

If this is “transparency,” we’d hate to see what opacity looks like in a Kasich administration.[...]

Governing is not an exercise in devising mechanisms to shut out the citizens you purport to represent – and for whom you are working.[...]

There may be a legal gray area here regarding the private site. That’s for courts to decide. But you don’t have to be an attorney to understand that well-established precedents toward disclosure are being snubbed – and that the spirit of Ohio’s open records laws is clearly being violated.[...]

You can’t privatize the public’s right to know.

Mr. Kasich, you may not be “worried about transparency,” but we sure are.

Another Ohio paper that endorsed Kasich, the Canton Repository, called Kasich’s transparency tap dance “baloney,” demanding to know “where’s the transparency?” Also noting Strickland’s adherence to disclosure, the Repository pointed out that “not only is Kasich sending the wrong message about his commitment to openness, he’s also not doing himself any favors when it comes to winning support” for his “controversial” idea to privatize the Ohio Department and Development, a plan the Repository accepts if “Kasich keeps his commitment to transparency.” However, as noted by Ohio Attorney General Rob Cordray, Kasich “fails [the] transparency test” there too.

While deeply frustrating to the newspapers who believed his rhetoric, Kasich’s retreat into opacity should not be surprising; its an increasingly popular part of the GOP playbook. This campaign season, Republican candidates maneuvered around public accountability as an electoral strategy — a strategy so successful that House Minority Whip Eric Cantor (R-VA) included it in a survival guide for freshmen House Republicans, even telling them which Capitol tunnel to take to avoid the press completely. With the GOP leadership prescribing the direct opposite of accountability, Kasich may just be following new orders. During his campaign, Kasich told Ohioans “if you’ve got something you want to know, I’ll tell you.” But as the Enquirer aptly points out, “that was then, this is now.” (HT: Plunderbund)

Yglesias

IMF vs ECB: Who’s More Austere?

I’m going to agree with Henry Farrell against James Vreeland and say that whatever problems you may have with the IMF’s “conditionality” vis-à-vis an Ireland bailout, their prescriptions are going to be a good deal less austere than what the European Central Bank would prescribe. IMF professional staffers are quite aware of the theory that they pushed austerity too hard in the 1990s and believe they’ve turned over a new leaf*; the conventional wisdom in Frankfurt by contrast seems to be that the problem with the Stability and Growth Pact is that it wasn’t severe enough.** There’s also just the matter of Germans. As Farrell says:

Jim is right to point to the differences between the Strauss-Kahn/Blanchard crowd and the IMF’s Executive Board. And it may be that the dynamics he points to are going to come into play during the monitoring process. But if the IMF is going up mano a mano against the ECB in a fight to see who can out-austere the other, I’d put my money on the ECB. The IMF may be indirectly responsible to Germany, the United Kingdom and France, but the US – which has been quietly expressing its displeasure with the EU’s hairshirts-for-everyone approach to fiscal retrenchment will have some say too, even if it is going to be reluctant to wade too obviously into intra-European fights. And the ECB, whatever the nominal voting system might suggest, is in practice beholden only to Germany, Germany and Germany.

Specifically, though the IMF has a very complicated governance structure the biggest says go to the United States and Japan, neither of which are super-invested in the idea of budget austerity. Germany (and the politically similar Belgian-, Dutch-, and Danish-led voting blocs) still has a lot of influence at the IMF but it’s less than they have at the ECB. Managing Director Dominique Strauss-Kahn (putting the international financial system under the authority of a French Jewish Socialist is like a hilarious joke by the way) also gets a vote on the board.

But this all seems irrelevant in many ways. Ireland doesn’t have enough output to pay off the bad debts of Irish banks and no conceivable budget will change that. Either they need to default, or else there has to be a real bailout where non-Irish actually pay off the debts instead of just loaning money to the Irish government. You can’t make the sums add up.

Read more

Alyssa

Thankful

I hope all of you are having a restful holiday. This Thanksgiving, I’m feeling culturally appreciative of the following things:

1) The bureaucracy nerd in me is thankful that we’re getting a movie based on Team of Rivals, and that Daniel Day Lewis is going hard by starting out in Illinois. The bureaucracy nerd in me is also concerned with who will be playing Lincoln’s Cabinet secretaries. Lincoln’s important for that story. But the men behind him are critical too.

2) I’m thankful we’ve got a romantic comedy coming out that’s set in Washington. Any time I get to see Reese Witherspoon in my town, and Owen Wilson in a Nationals uniform, it’s a good though.

3) I’m incredibly psyched that Ron Chernow’s got another ginormous biography out, this time of our first president. I fully intend to alternate Washington: A Life, and Cryptonomicon.

And on a personal note, I’m so glad for all of you. Talking to you guys via comments and email, and getting to know some of you in real life, has been an incredible gift over the last year and a half. You make me a better writer, a better thinker, and on some days, a much better person. Thank you.

Health

Consumer Advocates Give Mixed Reviews To MLR Regulations, Rockefeller Announces Hearings

On Monday, after months of negotiation and deliberation within the National Association of Insurance Commissioners (NAIC), the Department of Health and Human Services (HHS) issued interim-final regulations requiring health insurers to spend 80 to 85 percent of premium dollars on health care services. Insurers that fail to meet the new standards — called the Medical Loss Ratio or MLR — will have to issue rebates to beneficiaries.

The new rules have received mixed reviews from consumer advocates and insurers alike. Many of the nation’s largest insurance companies’ stocks actually “rose on the news Monday,” leading one analyst to speculate that the market was reacting to the end of a period of uncertainty for insurers, and that the regulations ended up “somewhat more positive than expected.” Indeed, the group Consumer Watchdog — an consumer advocates’ organization — argues that while “HHS deserves credit for resisting a lobbyist onslaught demanding more loopholes,” the agency “also left intact some of the industry’s chief goals, including over-broad tax deductions and loose definitions of ‘health quality improvements’ that will artificially boost the health care ratios (also known as medical loss ratios) of all insurers.” The group has identified the following problems:

1. Inclusion of public health marketing campaigns as “health quality improvements.” The NAIC proposal would allow insurance companies to count as health care certain marketing costs—such as anti-tobacco or anti-obesity messages—that are largely intended to improve a corporate image.

2. Excessive tax deductions. The proposed regulations would allow insurers to deduct almost all federal and state taxes, including income taxes, from their premium revenue before calculating the medical loss ratio.

3. Lack of transparency for administrative costs counted as “health quality improvements,” including: provider accreditation fees, prospective utilization review and telephone hotlines. Each of these activities is generally considered a cost-reduction, claims adjustment or administrative activity.

4. “Mini-med” plans: In a newly developed regulation, HHS announced a major exception to the MLR rules of so-called “mini-med” health insurance plans, which limit employee benefits to as little as a few thousand dollars a year. Such plans, mostly used in the retail and fast food industries, and for part-time employees, will be allowed minimum health care ratios as low as 40% (as opposed to the 85% level of conventional employee insurance). The exception is currently allowed for one year, and must not be allowed to continue beyond a year.

In a release issued on Monday, Sen. Jay Rockefeller (D-WV) expressed concern about the mini-med exemption saying, he was “disappointed that limited benefit ‘mini-med’ plans continue to seek exceptions from these standards,” but that “they should know that their requests will be subject to close scrutiny.” The Senator also announced that he would be holding hearings on the policies on Wednesday, December 1 at 2:30 p.m.

Hopefully, this will be the first of many. Regulators and Congress will have to keep a close eye on how insurers abide by the new standards to ensure that the industry doesn’t inflate its MLR numbers without actually delivering more efficient care.

Politics

Does Glenn Beck Think Andrew Napolitano Should Be Fired For Being A 9/11 Truther?

Last year, White House green jobs adviser, and now Center for American Progress fellow Van Jones resigned after Fox News host Glenn Beck’s months-long oil industry fueled campaign to smear Jones. “I’ve been talking about Van Jones, a special adviser to the president, because he’s got the president’s ear and he’s an admitted communist; a radical who wants to fundamentally change America,” Beck said. As part of his anti-Jones smear campaign, Beck claimed Jones is a “9/11 Truther” conspiracy theorist who believes the government orchestrated the 9/11 attacks. (Jones said of the charge, “it certainly does not reflect my views now or ever.”)

Now perhaps Beck may have to start a campaign against one of his Fox News colleagues. Yesterday, Fox News analyst and part-time host Judge Andrew Napolitano appeared on the radio show of well-known 9/11 truther Alex Jones, whom Napolitano has had a “close relationship” with. While discussing Fox News host Geraldo Rivera’s recent conversion to being at least open to 9/11 conspiracy theories, Napolitano — who has guest-hosted for Beck on Fox numerous times — said he thinks the government isn’t telling the American people the whole story on the terror attacks:

JONES: OK finally, man because I’ve never raised this with you, because it’s a subject I just leave alone with folks because I don’t want to cause people problems. But you brought it up with Geraldo Rivera, who says he is concerned about building 7, and I want to put the question you put to him to you. I mean, what do you think of Geraldo Rivera coming out — what do you think of 7?

NAPOLITANO: It’s hard for me to believe that it came down by itself. I was gratified to see Geraldo Rivera investigating it. I am gratified to see that people across the board are interested. I think twenty years from now, people will look at 9-11 the way we look at the assassination of JFK today. It couldn’t possibly have been done the way the government told us.

Listen here:

Media Matters’ Eric Hananoki, who notes that the conspiracy theories surrounding WTC 7 have been thoroughly debunked, adds that Napolitano has “dabbled in 9/11 trutherism before”:

In March, while still on FoxNews.com, Napolitano hosted truther Jesse Ventura, who was given an unchallenged platform to push 9-11 conspiracy theories. At the conclusion of that interview, Napolitano wondered if “someday we will look on 9-11 the way we look on the JFK assassination today, that is, where people who question the government’s involvement will be mainstreamed, rather than looked upon as an extremist fringe.” Napolitano also hosted Ventura in October on Fox Business; during the interview, Ventura said he was investigating the “alleged Pentagon plane” attack, to which Napolitano replied, “we’ll be watching.”

So what does Beck think about Napolitano’s 9/11 trutherism? “I have been warning about these people for years,” Beck has said, “these 9/11 Truthers are truly disturbed people.” When asked for comment by ThinkProgress, a press aide of Beck’s told us this afternoon that he is “not in a position to comment,” and asked ThinkProgress to “call back on Monday.”

Update

Beck’s thoughts on Napolitano are especially relevant, considering that Beck hosted the judge on his radio show today to talk about TSA screenings.

Yglesias

A Better View of Corporate Profits

Catherine Rampell offers a better view of the profits question which shows they’re high but not the highest ever:

This is all just to say that insofar as business has a problem right now it’s the same as everyone else’s problem. Nominal output (or nominal expenditure or aggregate demand) is way below its trend level, so many of our best-laid plans have gone to ruin. But the Kenyan Socialism era certainly isn’t hammering the business community in any particular way.

Politics

Pam Geller: Park51 Is ‘The Second Wave Of The 9/11 Attack’

In an age where the blackhole of Islamophobia threatens to engulf reasonable discourse, the Park51 proposal is undoubtedly its singularity. The mere mention of a possible Islamic community center near Ground Zero in New York City whips the right wing into apoplectic rants about Muslim Nazis and “spooky mosques” that create a “hot bed” for militants.

Manipulating visceral prejudices into a national platform, no right-wing fringe figure has succeeded more in turning hyperbole into a career than conservative blogger and “provocateur” Pamela Geller. Leading the anti-Park51 rallies in New York this September, Geller’s once-fringe vitriol has earned her a national spotlight, a place among mainstream conservatives, and now, an award named after Annie Taylor — the first American to survive a trip over the Niagara Falls — for “her efforts in defense of Judeo-Christian civilization.” Never missing an opportunity to elevate her incendiary rhetoric, Geller used her acceptance speech at David Horowitz’s Restoration Weekend conference last Friday to claim that not only is the proposed center a “triumphal mosque,” it is “the second wave of the 9/11 attack“:

GELLER: You have to understand that we’re in a war. We are at war now. It’s not coming. It’s not around the corner. We’re at war now. The GZM is the second wave of the 9/11 attack.…We are under attack. Obviously, the violent jihad, the academic jihad, the sociological jihad, the cultural jihad, the academic jihad, we have been infiltrated at the senior level of the DOD. …This is not a conventional war. Each one of you must fight this war…you’re each activated….We have not yet recovered the bodies from 9/11 and we’re under attack with ground zero mega mosque. And make no mistake, Cordoba, iconic of Islam’s conquering of the West, it’s quite deliberate….It’s a triumphal mosque. Because one shmuck in New York says “it’s a mosque of healing” doesn’t make it so. It’s ridiculous, it’s insulting.

Watch her speech:

This thoughtless comparison appears to be a new rallying cry for Geller. Reacting to news that Park51 applied for federally-funded grants, Geller called the request the “latest Islamic attack on the American people in the second wave of the Ground Zero mosque.”

Hearing the pied piper, many other GOP lawmakers like Rep. Michele Bachmann (MN) and Rep. Pete King (NY) followed suit, declaring the application “outrageous” and an “affront to all those who were murdered on 9/11.” Unfortunately, while her rhetoric wreaks havoc on civil discourse and tolerance, there is no indication that she will stop. As her Muslim-bashing ally Robert Spencer pointed out, “even Annie Taylor said nobody should ever do that again. But the winner of this award keeps on doing it.”

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